Salesforce’s Measured Buying

Plus, is the bear market back?

Steven Lerner 25.Aug.2022

Today is Thursday, August 25, 2022.

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Salesforce’s Measured Buying

Shares of Salesforce (NYSE: CRM) dropped 6.79% in after-hours trading on Wednesday after the cloud-based software company posted mixed financial earnings.

Financials: Salesforce reported earnings of $1.19 per share and revenue of $7.7 billion; both were better than expected.

The Good: Revenue is up 22% year-over-year and Salesforce is rolling out a $10 billion stock buyback program, which should help with the stock price.

The Bad: Revenue for the full year is expected to be between $30.9 billion to $31 billion, which was lower than expected.

Quote: “In this more measured buying environment, our Customer 360 portfolio is even more strategic and relevant as our customers focus on productivity, efficiency and time to value.” - Bret Taylor, Co-CEO.

Final Thoughts: Salesforce’s stock is down 29% this year, but up 1% in the past 30 days.

Notables

Notable Earnings Today: Peloton Interactive (Nasdaq: PTON), Affirm (Nasdaq: AFRM), Dollar Tree (Nasdaq: DLTR), Marvell Technology (Nasdaq: MRVL), Dollar General (NYSE: DG), Ulta Beauty (Nasdaq: ULTA), Golden Ocean Group (Nasdaq: GOGL), Dell (NYSE: DELL), Toronto-Dominion Bank (NYSE: TD), Gap (NYSE: GPS), Burlington Stores (NYSE: BURL), Workday (Nasdaq: WDAY), Abercrombie & Fitch (NYSE: ANF), Farfetch (NYSE: FTCH), Malibu Boats (Nasdaq: MBUU), Lantronix (Nasdaq: LTRX), Coty (NYSE: COTY), Elastic (NYSE: ESTC), Grab Holdings (Nasdaq: GRAB), VMware (NYSE: VMW), Hain Celestial (Nasdaq: HAIN), Hibbett (Nasdaq: HIBB), Ollie’s Bargain Outlet (Nasdaq: OLLI), Titan Machinery (NSE: TITN).

Notable IPOs Today: PaxMedica, Inc. (Nasdaq: PXMD), bioAffinity Technologies, Inc. (Nasdaq: BIAF), Mobilicom Limited American Depositary Shares (Nasdaq: MOB).

Notable Equity Crowdfunding Campaigns Ending Today: Lightning Clean (SMBX)

Notable Economic Events Today: Jobless Claims (8:30 a.m. ET), GDP (8:30 a.m. ET).

Is the Bear Market Gone - or Returning?

A strong performance in the public markets in July and into August has some investors wondering if the good times will last for the rest of the year.

Reasons to Worry: Inflation is still high at the moment and there is grave concern about a looming recession. More U.S. Federal Reserve rate hikes are likely coming soon.

Optimism: A strong jobs report has investors giddy. And while there might be rate hikes, they may not be as aggressive as we’ve seen in the past few months.

Not So Fast: It turns out that this recent uptick in stock prices might simply be a bear-market rally. Given the length of an average bear-market rally, it means that this rally might be ending soon, according to Citi Research.

Final Thoughts: The Jackson Hole Economic Symposium is here. This event will provide insight into the Fed’s potential rate hikes.

Equity Crowdfunding Spotlight: Nickelytics

Briefly describe your business. Nickelytics, a Techstars 20' backed startup, is a platform that makes launching hyperlocal out-of-home advertising as simple, scalable, and measurable as posting online ads.

What are the terms of the investment for your campaign? $10M Valuation Cap. See Republic for details.

What makes your startup special? We've solidified our product-market-fit, and we're now continuing to scale our business to bring our digital OOH ad platform to rapidly growing EV charging station networks and accelerate our demand-side growth.